Make Inclusion an Operational Strategy, Not a Standalone Program

Note: This article is the fourth in a four-part series examining the four core principles behind SHRM’s BEAM Framework: merit as the primary lens, access over identity, continuous calibration, and operationalizing inclusion.

Recent DEI executive orders have left many HR professionals wondering if their inclusion and diversity (I&D) programs might be targeted by federal enforcement agencies. To reduce the chances of being in the government’s crosshairs, employers should consider applying the principles that lay the foundation for SHRM’s BEAM (Belonging Enhanced by Access through Merit) Framework, one of which is operationalizing inclusion as an embedded operational strategy, not a standalone program.

The Strategic Advantage of Inclusion

Under the BEAM Framework, inclusive hiring practices are a strategic advantage for optimizing operational efficiency. By leveraging artificial intelligence, organizations can objectively assess candidates based solely on their capabilities.

Executives often “report that oftentimes they find themselves supporting I&D, not because they expect an output from it but rather because they expect it will lead to some sort of social good,” said Alex Alonso, Ph.D., SHRM-SCP, SHRM’s chief data and analytics officer. Instead, the executives say, inclusion should be a strategic component of workforce planning, “not as a quota but as a way of processing and identifying talent.”

Treating inclusion as a strategic enabler for operational efficiency transforms it from simply a compliance checkbox or ethical stance into a critical driver of measurable, performance-focused outcomes. 

Leaders can directly tie inclusive practices to key performance indicators, such as employee retention, productivity, and revenue growth.

When linked to a skills-first talent sourcing philosophy, an embedded inclusion approach prioritizes capabilities over traditional credentials, such as degrees or prior job titles and responsibilities, said Sara Jodka, an attorney with Dickinson Wright in Columbus, Ohio. 

“This ensures that inclusion is seamlessly integrated into the core business and its functions,” she explained. “Specifically, it expands the talent pool, reduces skills gaps, increases workforce ability and innovation, improves employee retention and engagement, reduces biases in hiring and promotion decisions, aligns inclusion into business outcomes, enhances workforce development and internal mobility, and strengthens employer branding and talent attraction.”

Jodka said employers should:

• Show how inclusivity helps organizations anticipate and respond to emerging trends, ensuring they remain competitive in rapidly changing industries. For example, tie inclusion to performance by highlighting data showing how diverse and inclusive teams consistently outperform homogenous ones in areas such as innovation.
• Use inclusion as a talent acquisition tool to attract top talent. There is a generational link to inclusion as younger employees, specifically those in Generation Z, expect employers to prioritize diversity and provide a workplace where employees can be their authentic selves.
• Show how inclusive hiring reduces blind spots and operational inefficiencies caused by groupthink or lack of diverse experiences. Varied perspectives drive relatability for customers by enabling teams to approach problems from multiple angles. 
• Align inclusion with risk mitigation. Inclusion should go beyond mere compliance but shouldn’t be at odds with it.

Resilient organizations often share one key characteristic—inclusion—when navigating challenging times, according to 2022 research from SHRM. Additionally, inclusive teams make better business decisions 87% of the time, Korn Ferry research found.

Emphasize a Skills-First Philosophy

By embedding a skills-first philosophy within a talent strategy program, it makes business sense to hire people who have the knowledge, skills, and abilities to do the job and not exclude those who may not have had the opportunity or resources to attend college or take a traditional career path, said David Epstein, SHRM-SCP, director of human resources and talent strategy at Mobilization for Justice in New York City. 

For example, a veteran may have served in the infantry for 20 years before coming into the civilian job market for the first time, he noted. “Their skills are transferable and a fit for many roles. With a skills-first philosophy as part of the talent strategy, this qualified candidate will be considered for a position where perhaps someone with a degree or civilian job title would have only been considered in the past,” Epstein said.

Many companies have put their I&D programs on hold, Epstein noted. “While the future of DEI is uncertain, inclusion practice must continue,” he said. “To succeed in a competitive market, organizations need to have diverse workforces in terms of thought, experience, and background.” He added that “organizational culture and sales benefit from a healthy, inclusive workplace.”

SHRM Webinar: Navigating Title VII Compliance Amid Recent I&D Policy Changes

Leveraging Artificial Intelligence for Inclusion

While AI can be a vital tool in operationalizing inclusion, algorithms should be trained to select candidates based on work-related ability—just as if selection were being done by a human, said Bradford Newman, an attorney with Baker McKenzie in Palo Alto, Calif. For example, candidates for a software position should be asked to respond to purely technical questions or write a short strand of code to solve a specific problem.

The same is true for blue-collar workers. For example, an algorithm can be trained to determine if a plumber understands the different types of pipe fittings needed to properly connect and direct water flow within a plumbing system.

“Focusing on determining applicant capabilities based on objective technical skill and knowledge minimizes the risk of using illegal selection criteria,” Newman said.

However, organizations should be careful not to train AI tools based on historical hiring data and patterns over the past decades, as the demographics of today’s applicant pool are likely much different, he noted. 

Employers should also ensure that AI algorithms are free of unfair bias, said Robert Hinckley Jr., an attorney with Buchalter in Los Angeles and Denver, who recommended regular audits of AI-powered tools.

Jodka also cautioned employers not to over-rely on AI. “Algorithms can overlook nuances like adaptability, emotional intelligence, or unconventional career paths that may signal high potential,” she said.

AI will likely not replace the personal interview, said Joyce Chastain, an employment law compliance consultant at The Krizner Group in Tallahassee, Fla. “So much can be learned about the personal dynamics of a candidate and the fit with the existing workplace climate during a personal interview,” she said. “If personal interaction is critical to the success of the role, a candidate with the closest matched skills could still be the wrong choice for the role.” That said, Chastain noted that “talent should always be measured based on skills.”

SHRM Webinar: Navigating the Two DEI Executive Orders: Merit-Based Practices and Belonging in the Evolving Policy Landscape

Broadening a company’s talent base can result in more innovation and better decision-making, in addition to increasing employee satisfaction and retention, Hinckley said. “As such,” he noted, “inclusion can positively impact business metrics.”